EUR/USD Candlestick Analysis: Euro Rebound Risk Remains

The Euro remains in consolidation mode against the US Dollar but positive RSI divergence warns of fading downside momentum and hints a rebound is ahead. Weekly resistance comes in at 1.1519, the 14.6% Fibonacci retracement, with a break above that exposing the 23.6% level at 1.1780. Initial support is at 1.1096, the January low.

An advance is likely to be corrective, both in terms of the long-term down trend dating back to April 2008 as well as our fundamental outlook. With that in mind, we will look for a bounce to run its course and monitor positioning for an on-coming selling opportunity.